A select group of Wyatt Investment Research subscribers have just booked real profits of 130% by investing in a unique technology stock. And they were able to achieve these impressive gains in just over 13 months!
Some of my subscribers even had the opportunity to double these profits and earn as much as 284% on the very same investment. Profits like these can be truly life changing.
Let me start by saying this: when I tell people that I just doubled my money in a stock, they mistakenly assume that the investment must have been very risky. They may also assume that for every big winner such as this, there are numerous big losers. However, I assure you that this is not the case.
Today I’m going to show you how to discover and invest in stocks with huge upside potential, without taking on big risks.
Now I’ll explain exactly how I uncovered this amazing opportunity. And I’ll share with you some of the key lessons that you’ll be able to apply to your future investments.
Netflix: Movie Rental “Game Changer”
You’ve likely heard of Netflix (Nasdaq: NFLX) before. In fact, you’ve probably seen their television or Internet ads. After all, the movie rental company has been a growing public company since 2002 and is a big success story. Like me, you may even be a Netflix subscriber.
Netflix made a name for itself in the DVD-by-mail business. The company’s now-famous red envelopes would be mailed to subscribers containing a DVD of their choosing.
The company was so successful that it destroyed Blockbuster. It was quite an accomplishment for a small Silicon Valley startup to kill the goliath of the movie rental business. After all, Blockbuster had sales of nearly $6 billion in 2004.
After killing off Blockbuster and squashing Wal-Mart’s attempts to enter the business, Netflix fell on hard times. A series of stupid mistakes by CEO Reed Hastings caused Netflix shares to lose nearly 80% of their value – falling from $300 to $70 in just a few months.
It was after the shares had plunged – in December 2011 – that I told a select group of Wyatt Investment Research subscribers about Netflix.
Specifically, I told my $100k Portfolio subscribers that Netflix was perhaps the stupidest company in the world. But I also explained that the stock had been punished far more than deserved. After all, when I recommended the stock the market valuation had plunged from $16 billion to less than $4 billion.
I explained to my readers that the sell-off presented a real value opportunity. Netflix was still a “game changer” that was turning the movie rental business upside down. They first did this with DVDs by mail, and were now raking in sales from video streaming that allowed members to watch movies on demand over the Internet.
Most importantly, I told my readers exactly how they could profit from this opportunity. Here is what I wrote back in December 2011, when Netflix was trading at $70:
“When big successful companies like Netflix get this beaten down, the result is usually (but not always) a huge gain over the following months… I expect that 12 months from now shares of Netflix will be valued at over $100. Longer-term, I think $150 a share is quite reasonable.”
In addition to recommending the stock to my readers, I personally bought the stock as well. I can say that this has been one of the biggest recent winners in any investment publication from Wyatt Investment Research. And many of my subscribers have been thrilled with the results.
Four “Game Changing” Investment Lessons from Netflix
I didn’t write today to brag though. If you are one of my $100k Portfolio subscribers who invested in Netflix at the right time, then I’m thrilled that I was able to help you reap the profits. Since many of you didn’t buy Netflix, then I want to help you understand the key lessons of this investment.
Here are four key takeaways from my Netflix investment:
- Occasionally a great company screw up and their share price is severely punished. This happens because investors hate to own “losers.” When a great company sees their shares unjustly plummet in price, they sometimes become deep value investments.
- Wall Street often gets it wrong. In terms of Netflix, nearly every Wall Street investment analyst was pounding their fists on the table telling investors to buy the stock when it was trading above $250. Yet, after the company made some mistakes and the shares fell by 80%, nearly every analyst rated the stock a sell.
- Most investors don’t take a real long-term view. They focus on the short term – this month’s product release, the past quarter’s financial results and the outlook for the current year. The vast majority of investors aren’t able to take a long view of an industry and market trends.
- Investing in “game-changing” stocks requires patience. Companies that are changing industries and turning the status quo upside down may have a bumpy ride along the way. Investing in this type of company requires both conviction and patience.
Great investments like Netflix don’t come along often. These investments are difficult to find, and take time to develop.
In the latest issue of $100k Portfolio (released yesterday to my subscribers), I recommend shares of another game changing stock that I think could turn one of America’s biggest industries on its head in the next five years.
In spite of a huge opportunity, the financial media hates the stock and is skeptical. Additionally, over 50% of the public share float is currently sold short.
Which is all the more reason to get in now — before Wall Street wakes up and sends its shares flying.
To get the name of this incredible company and find out why I think it’s in store for such dramatic growth, I invite you to take a free, 30-day trial membership to my exclusive investment service, $100k Portfolio.
When you sign up, you’ll pay absolutely nothing… this is a risk-free “test drive” of my service… and you'll get immediate access to the February issue that reveals my latest game changer.
Plus, you’ll see exactly how I’m managing a real money $100,000 portfolio — money I’ve earmarked for my children’s education. And you'll get access to every investment recommendation and piece of research I've published. If you’re interested, please follow the link below:
Full Disclosure: Ian Wyatt’s $100k Portfolio is an investment newsletter with a real-money portfolio. In that account and a personal account, I owned shares of Netflix. I recently sold a portion of my position and took profits from the stock. I continue to own shares of the company. Transactions were made according to the guidelines of our Trading Compliance Policy.